Unexpected State Refund Check in Mail (Possible Fraud)

[EricEng]

Has anyone ever get an authentic (watermarks, etc) state refund check they weren't expecting?  Some fraud concerns here.

I owed my state extra money at filing time for 2020, wrote a check for that amount, and CO cashed the check in March 2021.  Early April I get a refund check in the mail stating I "claimed $2" and this is the check for that. Sadly, my state tax services says they have a 8-12 week backlog on inquiry responses. CO switched to mailing a lot of checks due to such rampant fraud issues.  I went back and doubled checked my numbers in Turbo Tax and everything matches the amount I wrote a check for and amount cashed out.  If I did overpay, I didn't think state usually cared or figured it would send something else besides a check telling me I claimed something I didn't. 

My concern is someone was testing if they could file a state claim in my name, get the check, then issue a corrected for a larger amount.  Or maybe they were able to get the refund sent to different locations, like I get 1% at my home, and 99% to a second address.  I have not cashed the $2 refund check.  Not sure what I should do at this point.

[phildonnia]

I don't know about state taxes, but I have had the experience several times where the IRS sent me a random check for a small amount, and no explanation.  A week later, a notice would come saying only that "we adjusted your return".

Of course, you can call the taxing authority, and ask them.  If you want to spend an hour on hold over a matter of a few dollars.  I actually did this once (for a check of $9) because, like you, I was concerned about some kind of fraud.  To their credit, the agent actually spent twenty minutes "researching" it, and said that there was a subtle error in the IRS instructions that caused me to calculate the tax incorrectly. 

So it's at least plausible that the check in your situation is legitimate.  The best thing would be to check the online transcript of your state tax return to see if anything has changed. 

[EricEng]

So it's at least plausible that the check in your situation is legitimate.  The best thing would be to check the online transcript of your state tax return to see if anything has changed.

I sure hope that is the case.  I submitted paper copy of my state tax due to Turbo Tax's fee for state e-filing.  Never heard of an online transcript we can view of fed or state.

[trollwithamustache]

the "claimed" thing tickles me as odd, like someone filed something.

As a small business owner, between personal, business and payroll returns, checks seems to happened all the time, like every year I get at least one from the state or federalles. But it is just a check to either me or the business, with no explanation at all. If there is a statement, it some separately which can be confusing.

Does your state have a portal you can login and see what was filed on your name/SSN?

[EricEng]

Finally found the online location for my taxes with the state.  Apparently Turbo Tax thought I had a penalty of $2 for late payment, but state disagreed.  Maybe part of Covid rules.  So mystery solved.